1Under section 192C of the Act (Power to direct qualifying parent undertaking), the FCA has the power to give a direction to the qualifying parent undertaking of a UK RIE if the general condition is satisfied.
the parent undertaking is a body corporate which is incorporated in the United Kingdom, or has a place of business in the United Kingdom;
the parent undertaking is a financial institution of a kind prescribed by the Treasury by order.
In exercising or deciding whether to exercise its power under section 192(c) of the Act, the FCA will have regard to any statement of policy published under this section and for the time being in force.
[Note:1. Treasury has issued a draft order for consultation prescribing the types of financial institutions which are qualifying parent undertakings. See the draft Financial Services and Markets Act 2000 (Prescribed Financial Institutions) Order 201*, as published in the Treasury consultation paper titled ‘A new approach to financial regulation: draft secondary legislation’: http://www.hm-treasury.gov.uk/d/condoc_fin_regulation_draft_secondary_leg.pdf.
2. The FCA has issued a statement of policy with respect to the giving of directions under section 192C. http://www.fca.org.uk/news/firms/fca-statement-of-policy-on-the-use-of-the-power-to-direct-qualifying-parent-undertakings]
Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.